CBSE Class 12 · Globalisation

Concept, Causes and Political Consequences of Globalisation (Class 12 Political Science)

Updated 16 October 2026 · Fact-checked

Globalisation is about flows of ideas, capital, commodities and people across the world, which create and sustain worldwide interconnectedness. Such flows are old, but their scale and speed today are new. Technology, from the telegraph and telephone to the microchip, is the critical cause, together with people's awareness that distant events affect them.

Globalisation is two-way flows of ideas, capital, commodities and people, made faster and bigger by technology from telegraph to microchip.

Illustration drawn for QuestionBuddy.

Understand Concept and Causes of Globalisation

Why this topic matters. The opening of Chapter 7 sets up every later answer on globalisation. Board papers ask for its meaning (2 marks), its causes (2 to 4 marks), why it is multi-dimensional, and its political consequences. NCERT sections: 'The concept of globalisation', 'Causes of globalisation' and 'Political consequences'.

1. Three everyday stories (NCERT's opening).

Person	What happens	Aspect of globalisation
Janardhan	Becomes 'John' at a call centre, works through the night for US clients	Globalisation of services
Ramdhari	Buys his daughter a China-made cycle; earlier a US-made Barbie doll sold in India	Movement of commodities
Sarika	A first-generation learner who takes up a job her relatives oppose	A conflict of values from new opportunities

NCERT adds harder examples: farmers' suicides after buying costly MNC seeds, an Indian company buying a European rival, Nepalese workers in India, retailers fearing global chains, a film accused of copying Hollywood. Lessons: globalisation is not always positive, not only economic, and influence does not always run from rich to poor countries.

2. The concept.

Globalisation fundamentally deals with flows: ideas moving across the world, capital shunted between places, commodities traded across borders, and people moving for better livelihoods.
The crucial element is 'worldwide interconnectedness', created and sustained by these constant flows.
It is multi-dimensional: political, economic and cultural; it is wrong to treat it as purely economic or purely cultural.
Its impact is vastly uneven: it affects some societies, and some parts of societies, more than others, so conclusions must look at specific contexts.

3. Causes.

Cause	NCERT's point
Historical basis	The four flows have occurred through much of history; what is new is their scale and speed
Technology (critical element)	The telegraph, telephone and microchip revolutionised communication; as printing laid the basis of nationalism, technology now shapes how we think of personal and collective lives
Uneven pace	Capital and commodities move quicker and wider than people
Recognition of interconnection	Better communication is not enough; people must recognise that events in one place affect others: bird flu or a tsunami ignores borders, and major economic events have global effects

No single factor causes globalisation, but technology is critical.

4. Political consequences: what happens to the state?

Aspect	Effect
Erosion of state capacity	The welfare state gives way to a minimalist state that keeps core functions (law and order, security) but withdraws from welfare; the market sets economic and social priorities; MNCs reduce governments' ability to decide on their own
State primacy continues	The state remains the unchallenged basis of political community; old rivalries still matter; it still performs essential functions and chooses where to withdraw
State capacity boosted	New technology lets the state collect information about citizens, so it is better able to rule, not less

So globalisation both weakens and strengthens the state; a good answer shows all three aspects.

5. A voice in the margin. NCERT asks: 'Isn't globalisation a new name for imperialism? Why do we need a new name?' The chapter leaves this open. Keep it for the resistance section; for now, note that the flows NCERT describes run in several directions, for example an Indian company buying a European rival.

Key quotations

Short lines worth knowing by heart: who says them, when, and why they matter.

Globalisation as a concept fundamentally deals with flows
NCERT, Contemporary World Politics, Chapter 7: Clarifying an imprecisely used term.
The opening line of any definition answer.
worldwide interconnectedness
NCERT, Chapter 7: The crucial element created by constant flows.
Key phrase examiners look for.
Globalisation is a multidimensional concept
NCERT, Chapter 7: It has political, economic and cultural manifestations.
Basis for 'why multi-dimensional' questions.
the state is better able to rule, not less able
NCERT, Chapter 7: On how technology can boost state capacity.
The counter-point in political-consequence answers.

Concept and Causes of Globalisation: key facts

Four flows: Ideas
Capital
Commodities
People = worldwide interconnectedness; Capital and commodities move faster and wider than people.
Causes: Historical basis (scale and speed new)
Technology: telegraph, telephone, microchip
Awareness of interconnection: bird flu, tsunami, global economic shocks; Technology is the critical element, not the only one.
Political consequences: Erosion of state capacity welfare state to minimalist state; market and MNCs
State primacy continues law and order, security, rivalries
State capacity boosted information technology; Three aspects, two directions.
Opening examples: Janardhan services
Ramdhari commodities
Sarika conflict of values; Use them as quick illustrations.

Erosion of state capacity	welfare state to minimalist state; market and MNCs
State primacy continues	law and order, security, rivalries
State capacity boosted	information technology

Janardhan	services
Ramdhari	commodities
Sarika	conflict of values

How to answer Concept and Causes of Globalisation questions

Definitions need the four flows and 'worldwide interconnectedness'. Cause questions need technology plus history and awareness. Political-consequence questions must show both erosion and strengthening of the state.

1Define globalisation through the four flows and worldwide interconnectedness.
2Add 'multi-dimensional' and 'uneven' if the question is about the concept.
3For causes, start with technology (telegraph, telephone, microchip), then historical basis and awareness of interconnection.
4Illustrate with one example: a call centre, a China-made cycle, a tsunami.
5For political consequences, write all three aspects in NCERT's order.
6Conclude that the state remains central even as its role changes.

Concept and Causes of Globalisation in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

The four flows

Suppose a student in Pune watches an online lecture from a US university, her father's company receives investment from a Japanese firm, the solar panels on their roof were made in China, and her cousin moves to Dubai for work.

Identify each flow of globalisation.

Try it first, then show the solutionSolution

Online lecture: flow of ideas.
Japanese investment: flow of capital.
Solar panels made abroad: flow of commodities.
Cousin's move: flow of people.

Answer: One family touches all four flows, showing worldwide interconnectedness.

Memory hook: I-C-C-P: Ideas, Capital, Commodities, People.

State capacity

Imagine a city that hands bus services to a private firm, but at the same time installs cameras and a digital ID system that lets it track traffic offences instantly.

How does this mirror the political consequences of globalisation?

Try it first, then show the solutionSolution

Handing over buses mirrors the welfare state withdrawing.
Cameras and digital IDs mirror technology boosting state capacity.
The city still controls policing, its core function.

Answer: The state withdraws from some services but becomes stronger in others: globalisation reshapes rather than erases the state.

Memory hook: Fewer services, sharper eyes.

Tricks to remember Concept and Causes of Globalisation

Short memory aids. Say each one aloud once, then use it on a question the same day.

I-C-C-P
Ideas, Capital, Commodities, People: 'I Can Connect People'.
Use it when: Definition of globalisation.
T-T-M
Telegraph, Telephone, Microchip: the three inventions NCERT names.
Use it when: Technology as a cause.
Erode, Endure, Enhance
State capacity erodes, state primacy endures, state power is enhanced by technology.
Use it when: Three political consequences.

Concept and Causes of Globalisation: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: What the minimalist state keeps · 1 mark · MCQBoard level

According to NCERT, as the old welfare state gives way to a more minimalist state under globalisation, the state continues to perform core functions such as:
(a) running public schools and hospitals
(b) maintaining law and order and the security of its citizens
(c) fixing the prices of all commodities
(d) providing jobs to every citizen

Try it first, then show the solutionSolution

NCERT: the minimalist state performs core functions such as the maintenance of law and order and the security of its citizens, and withdraws from many welfare functions (1 mark).

Answer: (b) maintaining law and order and the security of its citizens

Example 2: Worldwide interconnectedness · 2 marks · Very short answerBoard level

What is worldwide interconnectedness? Name its components. (2 marks)

Try it first, then show the solutionSolution

Meaning (1 mark).
Four flows (1 mark).

Answer: Worldwide interconnectedness is the crucial element of globalisation: the links between different parts of the world created and sustained by constant flows. Its components are flows of ideas, capital, commodities and people.

Example 3: Assertion and reason: the state endures · 1 mark · Assertion-reasonHarder board level

Assertion (A): The old jealousies and rivalries between countries have not ceased to matter in world politics.
Reason (R): The state continues to be the unchallenged basis of political community.
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.

Try it first, then show the solutionSolution

NCERT gives both as separate signs that the primacy of the state continues; the state being the basis of political community does not by itself explain why rivalries persist (1 mark).

Answer: (b) Both A and R are true but R is not the correct explanation of A.

Example 4: Role of technology · 4 marks · Short answerHarder board level

How has technology contributed to globalisation? Is technology alone enough? (4 marks)

Try it first, then show the solutionSolution

Inventions and communication (1 mark).
Easier movement of the four flows; printing analogy (1 mark).
Not enough alone: recognition of interconnection (1 mark).
Examples: bird flu, tsunami, economic events (1 mark).

Answer: Technology is a critical element in globalisation. The telegraph, the telephone and, more recently, the microchip have revolutionised communication between different parts of the world, making it much easier for ideas, capital, commodities and people to move. Just as printing once laid the basis for nationalism, technology today shapes how we think about our personal and collective lives. But technology alone is not enough. Globalisation also requires people in different parts of the world to recognise their interconnections, to be aware that an event in one place can affect another. Bird flu or a tsunami does not respect national boundaries, and major economic events are felt far beyond their place of origin. Only when such awareness exists does improved communication produce globalisation.

Example 5: Source-based: the shrinking state? · 4 marks · Source-basedHarder board level

Read the passage (written for this page) and choose the most appropriate answer for each question.

A government that once ran schools, hospitals and ration shops now leaves many of these to private firms and focuses on policing and defence. Foreign companies shape many economic decisions. Yet the same government has built a huge database of citizens and uses it to deliver benefits and track tax evasion.

(i) The kind of state described in the first sentence is a:
(A) welfare state (B) minimalist state (C) socialist state (D) colonial state
(ii) The first two sentences together illustrate:
(A) erosion of state capacity (B) cultural heterogenisation (C) protectionism (D) the primacy of the state in rivalries
(iii) The last sentence shows that globalisation can:
(A) end the state's role altogether (B) boost state capacity through new technology (C) stop the flow of capital (D) only reduce state power
(iv) Which conclusion fits NCERT's account best?
(A) Globalisation has made the state irrelevant
(B) Globalisation has left the state untouched
(C) Globalisation changes the role of the state, weakening it in some areas and strengthening it in others
(D) Globalisation strengthens only the welfare functions of the state

Try it first, then show the solutionSolution

(i) (B): the state keeps core functions and withdraws from welfare (1 mark).
(ii) (A): welfare withdrawal plus MNC influence means erosion of state capacity (1 mark).
(iii) (B): technology helps the state collect information about citizens (1 mark).
(iv) (C): NCERT shows erosion, continued primacy and enhanced capacity together (1 mark).

Answer: (i) (B) minimalist state; (ii) (A) erosion of state capacity; (iii) (B) boost state capacity through new technology; (iv) (C) globalisation changes the role of the state, weakening it in some areas and strengthening it in others.

Example 6: Long answer: two views of the state · 6 marks · Long answerHOTS / competency

Two students debate. Asha says, "Globalisation has made the state powerless." Kabir replies, "Globalisation has made the state stronger than ever." Evaluate both claims using NCERT's account of the political consequences of globalisation, and give your own view. (6 marks)

Try it first, then show the solutionSolution

Evidence for Asha: erosion of state capacity (2 marks).
Evidence against Asha: state primacy continues (1.5 marks).
Evidence for Kabir: technology boosts state capacity (1.5 marks).
Own judgement: both overstate (1 mark).

Answer: Both students capture part of the truth, and both overstate it.

At the simplest level, globalisation erodes state capacity, the ability of governments to do what they used to do. Across the world, the old welfare state is giving way to a minimalist state that maintains law and order and security but withdraws from many welfare functions. The market becomes the main determinant of economic and social priorities, and the growing role of multinational companies reduces governments' ability to take decisions on their own.

Yet the state's primacy continues. It remains the unchallenged basis of political community, old jealousies and rivalries between countries still matter, and the state continues to perform its essential functions while consciously choosing the areas from which to withdraw.

In some respects globalisation has even strengthened the state. Enhanced technologies allow it to gather information about its citizens, so it is better able to rule; states have become more powerful than before as a result of new technology.

So Asha is wrong to call the state powerless, and Kabir is wrong to say it is stronger in every respect. Globalisation has reduced the welfare role of the state and its autonomy in economic policy, but it has not displaced the state; it has changed what the state does and, through technology, given it new capacities.

Where students lose marks in Concept and Causes of Globalisation

The slips examiners see most often, and what to write instead.

Mistake: Defining globalisation as only economic
Equating it with trade and MNCs.
Wrong working
Globalisation means the free flow of trade between countries.
Right working
Flows of ideas, capital, commodities and people creating worldwide interconnectedness; multi-dimensional.
Do this: Always list all four flows.
Usually costs: 1 mark.
Mistake: Saying globalisation began in 1991
Confusing India's reforms with globalisation itself.
Wrong working
Globalisation started in 1991.
Right working
The flows are centuries old; India began economic reforms in 1991.
Do this: Separate the global process from India's policy.
Usually costs: 1 mark.
Mistake: Only erosion of the state
Ignoring NCERT's other two aspects.
Wrong working
Globalisation makes states weak and powerless.
Right working
Erosion of capacity, continued primacy, and capacity boosted by technology.
Do this: Erode, Endure, Enhance.
Usually costs: 2 marks.
Mistake: Technology as the only cause
Missing the historical basis and awareness.
Wrong working
Globalisation is caused only by the internet.
Right working
Technology is critical, but historical basis and recognition of interconnection also matter.
Do this: Write 'not caused by any single factor'.
Usually costs: 1 mark.

Exam tips

Asked in: 2026 board paper 59/5/1 Q14 (2 marks, meaning of globalisation); 2026 board paper 59/1/1 Q16 (2 marks, globalisation as a multi-dimensional concept); 2026 board paper 59/4/1 Q21 (4 marks, flows of ideas, capital, commodities and people); 2024 board paper 59/2/1 Q22(a) and 2025 board paper 59/6/1 Q21 (4 marks, two causes); 2026 board paper 59/3/1 Q17 (2 marks, information technology and globalisation); 2023 board paper 59/1/1 Q6 (1 mark, main cause); 2024 board paper 59/3/1 Q21 (4 marks) and 2025 board paper 59/4/1 Q15 (2 marks) on political consequences. Answers here are our own.
Learn the four flows in NCERT's order: ideas, capital, commodities, people.
Name the three inventions in technology answers.
Political consequences: write three headed paragraphs.
Use NCERT's Janardhan-Ramdhari-Sarika examples for quick illustration.

Practice questions on Concept and Causes of Globalisation

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
Which of NCERT's opening examples shows that globalisation need not always be positive?
(a) Janardhan's call-centre job
(b) Ramdhari buying a cycle made in China
(c) Farmers who committed suicide after their crops, grown from very expensive MNC seeds, failed
(d) An Indian company buying a rival based in Europe
Hint
NCERT says these examples show globalisation can have negative consequences.
Answer
(c) Farmers who committed suicide after their crops, grown from very expensive MNC seeds, failed.
Q2 · 2 marks · Very short answerBoard level
Classify each as a political, economic or cultural manifestation of globalisation: (i) the welfare state giving way to a minimalist state; (ii) investors in rich countries putting money into developing countries; (iii) a militant group threatening college girls who wear western clothes; (iv) the state using new technology to collect information about citizens. (2 marks)
Hint
Ask who is affected: the state, the economy or values and ways of life.
Answer
(i) Political: it changes what the state does. (ii) Economic: a flow of capital. (iii) Cultural: a clash over values and dress. (iv) Political: technology boosts state capacity. (Half a mark each.)
Q3 · 2 marks · Very short answerHarder board level
NCERT asks in the margin: 'Isn't globalisation a new name for imperialism?' Give two points from the chapter's account of the concept and causes that suggest globalisation is broader than imperialism. (2 marks)
Hint
Direction of flows; causes.
Answer
(i) The flows do not run only from powerful to weaker countries: an Indian company bought a major rival based in Europe, and Nepalese workers come to India for work. (ii) Globalisation is not caused by any single factor or country: technology and people's awareness of their interconnections drive it, and similar flows have occurred through much of history.
Q4 · 1 mark · Assertion-reasonHarder board level
Assertion (A): Improved communications alone are sufficient to produce globalisation.
Reason (R): The telegraph, telephone and microchip have revolutionised communication.
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.
Hint
People must also recognise interconnections.
Answer
(d) A is false but R is true: people must also recognise their interconnections with the rest of the world.
Q5 · 4 marks · Short answerHarder board level
Using NCERT's opening examples, show that globalisation is not only economic and that its influence does not always flow from rich to poor countries. (4 marks)
Hint
Sarika; Indian company buying a European rival.
Answer
Not only economic: Sarika, a first-generation learner, takes up a job her relatives oppose, a conflict of values created by new opportunities; a militant group threatening college girls in western clothes and a film accused of copying Hollywood show cultural and political sides. Not one-way: an Indian company bought a major rival based in Europe despite protests by its owners, and Nepalese workers come to India for work, so influence also runs from developing countries outward or between developing countries. Some examples, such as farmers' suicides after buying costly MNC seeds, also show that globalisation is not always positive.
Q6 · 4 marks · Short answerHOTS / competency
Suppose an epidemic begins in one country and within weeks affects trade, travel and stock markets across continents. Use this to explain how awareness of interconnection is a cause of globalisation. (4 marks)
Hint
Bird flu, tsunami; events cross borders.
Answer
NCERT says globalisation needs more than communication technology: people must recognise that events in one part of the world affect others. An epidemic that crosses borders shows this clearly, like bird flu or a tsunami, which do not respect national boundaries. As people see trade, travel and markets elsewhere disrupted, they become aware of their dependence on distant places, and governments and businesses begin to plan and cooperate across borders. This awareness, built on fast flows of information, deepens worldwide interconnectedness. Similarly, major economic events are now felt globally, not only locally or nationally, which pushes societies to think and act globally.
Q7 · 6 marks · Long answerHOTS / competency
"Globalisation is old, yet contemporary globalisation is unique." Explain the concept and causes of globalisation in the light of this statement. (6 marks)
Hint
Flows; historical basis; scale and speed; technology; awareness.
Answer
Globalisation is about flows of ideas, capital, commodities and people, which create and sustain worldwide interconnectedness. It is multi-dimensional, with political, economic and cultural sides, and its impact is uneven.
It is old because these four flows have taken place through much of human history; in India, for example, the movement of goods, ideas and people goes back centuries. Contemporary flows must be seen against this historical background.
It is unique today because of the scale and speed of the flows. The main reason is technology: the telegraph, the telephone and the microchip have revolutionised communication and made it easy for ideas, capital, commodities and people to move. The pace still varies, with capital and commodities moving quicker and wider than people.
A second cause is awareness. Globalisation does not arise merely from communication technology; people must recognise their links with the rest of the world. Today we know that bird flu or a tsunami crosses borders and that major economic events have global effects.
So the statement is valid: the flows are old, but their intensity, made possible by technology and sustained by awareness of interdependence, makes contemporary globalisation distinct.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.What are the four flows of globalisation?Show answer
Ideas, capital, commodities and people.
2.What are the three manifestations of globalisation named by NCERT?Show answer
Political, economic and cultural.
3.Which three inventions does NCERT link to globalisation?Show answer
The telegraph, the telephone and the microchip.
4.Which two events does NCERT give as examples of things that do not respect national boundaries?Show answer
Bird flu and a tsunami.
5.According to NCERT, what continues to be the unchallenged basis of political community?Show answer
The state (the primacy of the state continues).
6.What gift had Ramdhari bought his daughter the year before, and where was it originally made?Show answer
A Barbie doll, originally manufactured in the US.

Concept and Causes of Globalisation: frequently asked questions

What is globalisation in simple words?

The flow of ideas, capital, commodities and people across the world, which links societies into a web of worldwide interconnectedness.

What is the main cause of globalisation?

Technology is the critical element, but globalisation has no single cause; history and awareness of interconnection also matter.

What role does the market play under globalisation?

It becomes the prime determinant of economic and social priorities, while multinational companies reduce governments' ability to take decisions on their own.

Who are Janardhan, Ramdhari and Sarika?

Characters in NCERT's opening examples: Janardhan shows the globalisation of services, Ramdhari the movement of commodities, and Sarika a conflict of values arising from new opportunities.